Some members of your team are so valuable that your business operations rely upon them. If an essential team member becomes critically ill or passes away, key person insurance helps you keep your business going.
Some members of your team are so valuable that your business operations rely upon them. If an essential team member becomes critically ill or passes away, key person insurance helps you keep your business going.
A business is only as good as its people. Without particular members of your team, your business might not be able to keep going.
An essential team member, also known as a key person, is someone your business relies upon. If your business would struggle to function without them, they're probably a key person.
A key-person could be:
Key person insurance provides cover for your business if an essential member of your team passes away or can no longer work due to serious illness.
Unlike critical illness or life insurance, key person insurance pays out directly to the business, rather than the team member's family. If things go wrong, your business will receive a lump sum payment to help you stay afloat, giving you breathing space as you work to restore confidence.
Having key person insurance can instil confidence in employees, stakeholders and investors, as it makes your business less vulnerable to unexpected changes.
A surprising number of businesses would need to stop trading immediately if they lost a key person. Business leaders should identify their key people and consider how losing them unexpectedly would impact their organisation.
A business owner, for example, might have strong relationships with her clients, causing them to jump ship if she was no longer at the helm.
To assess whether insuring a team member is the right approach, you can calculate the value of their contribution to the business and the financial impact of losing them. If it would be challenging to cover the costs, key person insurance might be a suitable solution.
You'll need to consider:
Our specialist advisors can help you understand your businesses’ reliance on key people and assess the value of their work. Trulife works closely with specialist business insurance providers, so you can be sure we'll find a policy that works for you.
We'll offer guidance on:
Identifying your key people
Assessing their value to the business
Choosing the right key person insurance product
If you’re looking for key person insurance, talk to Trulife. We’ll quickly connect you with a member of the team and help you take care of business during challenging times.
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